CMB Downgraded

Monday, February 12, 2001

KBC Securities downgraded CMB to "accumulate" from "buy" because it does not expect the Belgian shipping company to significantly outperform the market. KBC said weakening U.S. dollar and a decline in shipping rates would weigh on CMB. "CMB already said that the first half of this year should be as strong as the second half of last year," KBC said in a research note. "However, with the trend clearly down and given our view on the U.S. dollar and the stock markets for this year, the CMB share is unlikely to repeat its excellent performance of 2000," KBC said, noting the roughly 70 percent price rise last year. "We do not see CMB outperforming the market significantly from here on, and therefore we have scaled back our view on CMB from 'buy' to 'accumulate'," KBC said. - (Reuters)